اخبار 1

To my generation, Nipper is an old treasured friend. Nipper is the dog you see on that immortal brand logo of His Master's Voice, better known as HMV. Most of us , in the good old days, owned a HMV Radio and certainly bought a few HMV records - or at least one or two, for the money would stretch only so much those days. In India, until Television really came to the country along with the Asian Games of 1982, HMV radio was the prime entertainment medium of the land. HMV has now gone into receivership and , I'm afraid Nipper will now be consigned to a dusty shelf in some museum. Nipper, was Mark Barraud's dog and lived in the late 1800s in Bristol in England. On his death, a sorrowful Barnard painted the famous picture of Nipper listening to a gramophone with a puzzled expression and sold it to the Gramophone company. A marketing genius there called William Owen made it the logo of the business and thus was the immortal His Master's Voice born. The Gramophone Company star...

My state is coming into election time. The politics of it - who will win; who will lose, etc is beyond the purview of this blog. But this blog will certainly muse on the economics behind it. I am foxed as to why anybody wants to stand for any election - for the economics behind this is akin to a Las Vegas casino. On a conservative estimate, each candidate would spend about Rs 15 crores in each assembly seat ( see this speech as evidence of such numbers). More than three quarters of it is not for campaigning, but to bribe the voters (shame on you and me). Traditionally it used to be just cash and liquor.  But apparently now even water drums, watches, sarees and T shirts feature, as evidenced by this photograph and this article from The Hindu today. The number of assembly constituencies in Karnataka is 224. There are four political formations in the fray. So that makes for 900 serious candidates. At Rs 15 crores per candidate, that amounts to an expenditure of Rs 13,500 crores .  Karna...

Barbarians at the Gate is the name of the scintillating book that detailed the leveraged buyout of RJR Nabisco in the mid 1980s. It was made into a movie as well and for a long time it was the biggest M&A transaction in the world. I strongly recommend the book, if you have an interest in business. ( or if you like thrillers !)   Take 2 seems to be happening in the goings on with Dell . The resemblance to what happened with RJR Nabisco is uncanny.   The Dell story started with Michael Dell, the founder teaming up with Silver Lake, a private equity firm,  and announcing a bid to take Dell private at $13.65 a share (a 25% premium over the closing price of $ 10.88 prior to this announcement). When rumours of this started to surface in January, people thought it was not a doable deal. Dell after all is a struggling PC maker in an industry which is declining with the onslaught of tablets. In any case its a fiercely competitive and somewhat commoditized industry. Whoever wants to pay top...

Tragedies are usually associated with Greece - a tribute to the richness of its theatre in the 5th Century BC. Over the weekend, you could be forgiven if you changed your tastes to a Cypriot tragedy. For that's exactly what has happened - albeit in the more prosaic world of economics.   These are the facts. Cyprus is another Eurozone country in deep trouble. It needed a bailout. So far, nothing unusual. A bailout was duly announced over the weekend. It was the terms of the bailout that sent a jolt reverberating through the world of economics. The EU is bailing them by about €13 bn (chickenfeed by the standards of bailout). But the conditions of the bailout are that all bank depositors would be levied a tax of between 6.75% and 9.9%. That means on Tuesday when banks opened, all depositors would lose that amount instantaneously.   The genesis of the problem is, alas, not new. Cyprus is a very small country. In boom times, it went berserk pushing its financial industry, positioning it...

Everybody wears glasses. Figuratively, if not literally. We view the world through the prism of our biases and values. That is all fine. But what I cannot fathom is why this is rose tinted. We think of the past as some long lost Utopia. Notice , how often the phrase "good old days" is bandied about. Certainly old, but good ??? I suggest not. The past is actually closer to hell than heaven. After all we have "progressed" ; haven't we ? So progress must equate to betterment. So, why the rose tint ? Nowhere is this more evident than in US politics. Everybody waxes eloquently about the founding fathers and swears by the Constitution that was written a few hundred years ago. The founding fathers have been elevated to sainthood. Balderdash. They were as roguish as the present lot. They had slaves and it was perfectly OK to shoot a fellow Senator. The Second Amendment begins as "A well regulated Militia, being necessary to the security of a free State ...... ...